2024 (9) TMI 552

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....7-18 dated 05.02.2018, whereby the demand of service tax along with interest and penalty was affirmed. 2. The appellant is manufacturing ceramic tiles and is having central excise registration as well as service tax registration. Considering the fragile nature of the tiles being prone to breakage/quality defect and also to maintain the "Kajaria" brand value, the appellant company charges handling charges @0.6% to 1% from their dealers/customers, which is part of sales consideration and appropriate VAT/CST is paid thereon. According to the appellant, the handling charges were charged in the invoice raised to dealers/buyers in connection with the sale of tiles and thus, forms part of the sale value for the purpose of leviability of VAT/CST. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Vs. Commissioner of Central Excise and Service Tax, Surat-II 2018(364) ELT 281 (Tri.-Ahmd.), where the issue involved was whether the amount equal to 7% of the value of the goods, collected as insurance charges under the head "cost of transportation" from the dealers/buyers is includible in the assessable value and chargeable to duty. The Tribunal had categorically noted that the issue of charging duty on the said insurance charges by adding to the assessable value is settled by this Tribunal as similar proceedings initiated has been decided vide Final Order No.A/40/2010-WZB/AHD dated 01.12.2009 2010(253) ELT 610 (Tri.-Ahmd.) and Revenue‟s appeal against the said judgement before the Apex Court was dismissed by Order dated 19.07.2010....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e etc.. Thus, in our view it is immaterial whether the deduction is claimed by including the said 7% charge in the total price, or the same is shown separately, without including it in the assessable value but on merit to be added to the assessable value. The question for consideration is, whether the amount collected, for compensating the customers towards breakage of glass, during the course of transit, to be added to the assessable value, or otherwise. The Hon'ble Supreme Court, in Surya Roshni Ltd.'s case (supra) while considering the deductibility of the insurance amount, collected other than the premium paid to the insurance company towards loss/breakage of glass during transit observed that it is only the premium amount to be exc....